Construction of new HealthSouth rehabilitation hospital to begin at Ludlow Mills site

LUDLOW - The U.S. Department of Environmental Protection has awarded Westmass Area Development Corporation, the owner and developer of the Ludlow Mills project, a $200,000 brownfields clean-up grant, another step in the continuing redevelopment of the 1.4 million square-foot redevelopment project.

Kenn W. Delude, president and CEO of Westmass, said he wished to acknowledge the strong support of U.S. Rep. Richard E. Neal, D-Springfield, in helping to secure the EPA cleanup grant.

The grant award was part of a competitive process and Ludlow Mills is one of 18 projects in Massachusetts to receive EPA Region One grants in this round.

Westmass will use the funding to immediately begin removing asbestos from old mill buildings on the site.

Delude said the funds will augment state funding from the Office of Energy and Environmental Affairs for environmental remediation work that did not cover the removal of asbestos.

Delude said, “This is another significant step forward in the redevelopment of the largest brownfield mill redevelopment project in New England. Without this kind of remediation and the securing of essential state grants through the administration of Gov. Deval Patrick and our local legislative delegation, Westmass would not have been able to attract and retain HealthSouth, which will be relocating to the Ludlow Mills in the next year,” Delude said.

HealthSouth is investing $27 million to build a new rehabilitation hospital to relocate 53 beds and 240 employees to the Ludlow Mills site by the end of 2013.

A site plan for the new rehabilitative hospital was approved June 6 by an administrative review committee appointed by the Planning Board, Town Planner Douglas Stefancik said.

A comprehensive special permit for the entire Ludlow Mills project already has been approved by the Planning Board, Stefancik said.

Individual projects still need approval of site plans by an administrative review committee, he said.

HealthSouth has purchased 10 acres along State Street from Westmass. Demolition of some existing buildings on the site will take place in July.

Groundbreaking for the HealthSouth project will be in August and completion is expected at the end of 2013.